I'm a little confused about why we need to increase inflation by 1%. Can't ned just use that 40M Steem to upvote said account? That would leech far more value than 1% from the current reward pool.
I don't know, hardforking to increase inflation on a platform that already has high inflation? Seems like a bad idea. I'm not necessarily against it though.
There's no strict need to increase inflation, and the 1% is an "example amount" (e.g. means for example). Another possibility is simply to take inflation from an existing source. A third possibility is just to have it funded from donations. As a mentioned, this choice will be one of the most contentious decisions to be made, I think. I'm personally ok with many of the available options for the funding, although I think just using donations won't be sufficient.